OpenAI is facing growing pressure after shutting down its AI video tool Sora just months after launch. The move signals a shift away from consumer-focused AI and raises questions about whether the AI boom is starting to slow down.
The shutdown also cost OpenAI a major deal with The Walt Disney Company. The partnership would have allowed users to generate videos using popular characters from Marvel, Pixar, and Star Wars. Disney had planned a $1 billion investment, but pulled out after OpenAI exited the video space.
At the same time, the company is dealing with backlash over a contract with the United States Department of Defense. Critics raised concerns about how the technology could be used. The controversy led to some users uninstalling ChatGPT, while competitor Anthropic gained attention.
Financial issues are also adding pressure. OpenAI is reportedly losing billions as it spends heavily on data centers and computing power. Analysts believe the company may not become profitable until after 2030, with a huge funding gap expected in the coming years.
Despite all this, investors are still backing the company. In 2025, OpenAI raised $40 billion in a massive round led by SoftBank Group, reaching a valuation of around $300 billion.
OpenAI says the Sora shutdown is part of a bigger strategy to focus on advanced AI and long-term goals. But with rising costs, public criticism, and strong competition from companies like xAI, many are starting to ask the same question — is the AI bubble beginning to burst?
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